XYZ Corp. has operations In the U.S. and Canada. Within Canada, it has two separate Divisions due to Statutory requirements: one in Quebec and another in Ontario. How would you define the organization structure for XYZ Corp. from the Information given above?

Two ledgers are required—one USD ledger for U.S. operations and one CAD ledger for Canadian operations. Because Canadian statutory rules treat Quebec and Ontario as separate legal entities, XYZ needs three legal entities: U.S., Quebec, and Ontario. Each legal entity normally owns its own operating unit, so three operating units are defined, yielding the structure: 2 ledgers / 3 legal entities / 3 operating units.

A. Combines both Canadian entities into one legal entity, violating stated statutory separation.
B. Provides only two legal entities, not three, so Quebec and Ontario cannot be distinguished legally.
C. Gives only two operating units, preventing one legal entity from having its own operating unit.
E. A third ledger is unnecessary because Quebec and Ontario share currency, calendar and chart of accounts.

1. Oracle Financials Concepts Guide R12.2 (Part No. E22952-15), Ch.6 “Multiple Organizations and Ledgers”, Sec. “Legal Entities and Ledgers”, pp.6-3–6-5.

2. Oracle General Ledger Implementation Guide R12.2 (Part No. E22950-12), Ch.2 “Defining Accounting Setup”, pp.2-4–2-6 (“When to create additional ledgers”).